Revenue Climbed 160% to $4.8 Million
SaaS Revenue Grew 93% Reaching $3.2 Million
Intellicheck, Inc. (Nasdaq: IDN), an industry leader in identity
verification and authentication solutions, today announced its
financial results for the second quarter ended June 30, 2021.
Revenue growth jumped 160% to a record $4,797,000 versus $1,842,000
in the prior year comparable period. SaaS revenue for the second
quarter June 30, 2021 rose 93% totaling $3,234,000 versus
$1,671,000 in the prior year comparable period.
CEO Bryan Lewis said, “We continue to execute our strategic plan
for growth and expansion in current and new market verticals.
Recognizing that this requires investment, we have increased our
investments in sales and marketing and have added new developers to
fuel our R&D efforts. This productive quarter demonstrates we
are already seeing the impact.”
Gross profit as a percentage of revenues was 69.4% for the three
months ended June 30, 2021, versus 88.6% in the prior year
comparable period. SaaS revenues represented 67% of total sales
during the quarter. The difference in gross margin reflects a sales
mix that included approximately $1.4 million of hardware sales that
carry lower gross margins than SaaS revenues. Excluding hardware
sales and related costs in both periods, gross profit as a
percentage of sales was 93.3% for the three months ended June 30,
2021, versus 89.8% in the prior year comparable period.
Net loss for the three months ended June 30, 2021 was ($738,000)
or ($0.04) per diluted share versus a net loss of ($760,000) or
($0.05) per diluted share for the comparable prior year period.
Non-cash expenses during the quarter included stock-based
compensation costs that totaled $651,000.
Adjusted EBITDA (earnings before interest and other income,
income taxes, depreciation, amortization, stock-based compensation
expense and certain non-recurring charges) was a loss of ($46,000)
for the second quarter of 2021 as compared to a loss of ($619,000)
in the prior year comparable period. A reconciliation of adjusted
EBITDA to net loss is provided elsewhere in this release.
Cash on June 30, 2021 totaled $11.9 million and stockholders’
equity totaled $22.1 million at the end of the period.
The financial results reported today do not take into account
any adjustments that may be required in connection with the
completion of the Company’s review process and should be considered
preliminary until the Company files its Form 10-Q for the fiscal
period ended June 30, 2021.
Conference Call Information
The Company will hold an earnings conference call on August 3 at
4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen
to the earnings conference call, please dial 877-407-8037. For
callers outside the U.S., please dial 201-689-8037.
A replay of the conference call will be available shortly after
completion of the live event. To listen to the replay, please dial
877-660-6853 and use conference identification number 13721644. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13721644. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until August 17, 2021.
INTELLICHECK, INC.
BALANCE SHEETS
ASSETS
June 30,
December 31,
2021
2020
(Unaudited)
CURRENT ASSETS:
Cash
$
11,939,948
$
13,121,392
Accounts receivable, net of allowance of
$5,474 and $42,974 at
June 30, 2021 and December 31, 2020,
respectively
3,409,234
2,119,861
Inventory
374,898
-
Other current assets
832,219
340,718
Total current assets
16,556,299
15,581,971
PROPERTY AND EQUIPMENT, net
289,449
138,870
GOODWILL
8,101,661
8,101,661
INTANGIBLE ASSETS, net
430,101
482,591
OPERATING LEASE RIGHT-OF-USE ASSET
-
31,131
OTHER ASSETS
8,500
4,250
Total assets
$
25,386,010
$
24,340,474
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
582,796
$
46,171
Accrued expenses
2,145,812
1,638,798
Operating lease liability, current
portion
-
32,620
Deferred revenue, current portion
539,328
402,782
Total current liabilities
3,267,936
2,120,371
OTHER LIABILITIES:
Deferred revenue, long-term portion
6,598
8,662
Total liabilities
3,274,534
2,129,033
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized;
18,727,552 and 18,410,458 shares issued
and outstanding at
June 30, 2021 and December 31, 2020,
respectively
18,728
18,410
Additional paid-in capital
140,267,314
138,569,746
Accumulated deficit
(118,174,566)
(116,376,715)
Total stockholders' equity
22,111,476
22,211,441
Total liabilities and stockholders'
equity
$
25,386,010
$
24,340,474
INTELLICHECK, INC.
STATEMENTS OF
OPERATIONS
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2021
2020
2021
2020
REVENUES
$
4,797,141
$
1,842,195
$
7,659,682
$
4,957,467
COST OF REVENUES
(1,468,516
)
(209,945
)
(1,689,244
)
(902,829
)
Gross profit
3,328,625
1,632,250
5,970,438
4,054,638
OPERATING EXPENSES
Selling, general and administrative
2,714,396
1,415,336
5,095,176
2,869,891
Research and development
1,352,624
986,312
2,688,865
1,929,611
Total operating expenses
4,067,020
2,401,648
7,784,041
4,799,502
Loss from operations
(738,395
)
(769,398
)
(1,813,603
)
(744,864
)
OTHER INCOME
Gain on forgiveness of unsecured
promissory note
-
-
10,000
-
Interest and other income
610
9,125
5,752
11,193
Total other income
610
9,125
15,752
11,193
Net loss
$
(737,785
)
$
(760,273
)
$
(1,797,851
)
$
(733,671
)
PER SHARE INFORMATION
Loss per common share -
Basic/Diluted
$
(0.04
)
$
(0.05
)
$
(0.10
)
$
(0.05
)
Weighted average common shares used
in computing per share amounts -
Basic/Diluted
18,708,409
16,377,539
18,612,512
16,265,544
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
(Unaudited)
Three months ended June 30,
2021
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, March 31, 2021
18,686,391
$
18,686
$
139,550,103
$
(117,436,781)
$
22,132,008
Stock-based compensation expense
-
-
650,983
-
650,983
Exercise of stock options
25,000
25
46,445
-
46,470
Exercise of warrants
9,000
9
19,791
-
19,800
Issuance of shares for restricted stock
grants
7,161
8
(8)
-
-
Net loss
-
-
-
(737,785)
(737,785)
BALANCE, June 30, 2021
18,727,552
$
18,728
$
140,267,314
$
(118,174,566)
$
22,111,476
Three months ended June 30,
2020
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, March 31, 2020
16,209,627
$
16,210
$
128,989,744
$
(116,908,510)
$
12,097,444
Stock-based compensation expense
-
-
103,710
-
103,710
Issuance of common stock, net of costs
1,769,230
1,769
10,567,698
-
10,569,467
Exercise of stock options, net of cashless
exercise of 8,958 shares
31,650
32
13,939
-
13,971
Issuance of shares for restricted stock
grants
10,325
10
(10)
-
-
Settlement of executive bonuses with
issuance of restricted stock units
9,462
9
53,451
-
53,460
Shares forfeited in exchange for
withholding taxes
(2,012)
(2)
(13,335)
(13,337)
Net loss
-
-
-
(760,273)
(760,273)
BALANCE, June 30, 2020
18,028,282
$
18,028
$
139,715,197
$
(117,668,783)
$
22,064,442
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
(Unaudited)
Six months ended June 30,
2021
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2020
18,410,458
$
18,410
$
138,569,746
$
(116,376,715)
$
22,211,441
Stock-based compensation expense
-
-
1,631,616
-
1,631,616
Exercise of stock options, net of cashless
exercise of 58,122 shares
299,179
299
46,471
-
46,470
Exercise of warrants
9,000
9
19,791
-
19,800
Issuance of shares for restricted stock
grants
8,915
10
(10)
-
-
Net loss
-
-
-
(1,797,851)
(1,797,851)
BALANCE, June 30, 2021
18,727,552
$
18,728
$
140,267,314
$
(118,174,566)
$
22,111,476
Six months ended June 30,
2020
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2019
16,041,650
$
16,042
$
128,668,583
$
(116,935,112)
$
11,749,513
Stock-based compensation expense
-
-
189,752
-
189,752
Issuance of common stock, net of costs
1,769,230
1,769
10,567,698
-
10,569,467
Exercise of stock options, net of cashless
exercise of 11,409 shares
146,957
147
139,111
-
139,258
Exercise of warrants
50,000
50
109,950
-
110,000
Issuance of shares for restricted stock
grants
12,995
13
(13)
-
-
Settlement of executive bonuses with
issuance of restricted stock units
9,462
9
53,451
-
53,460
Shares forfeited in exchange for
withholding taxes
(2,012)
(2)
(13,335)
-
(13,337)
Net loss
-
-
-
(733,671)
(733,671)
BALANCE, June 30, 2020
18,028,282
$
18,028
$
139,715,197
$
(117,668,783)
$
22,064,442
INTELLICHECK, INC.
STATEMENTS OF CASH
FLOWS
(Unaudited)
Six months
ended June 30,
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(1,797,851
)
$
(733,671
)
Adjustments to reconcile net loss to net
cash used
in operating activities:
Depreciation and amortization
83,989
80,756
Stock-based compensation expense
1,631,616
189,752
Change in provision for doubtful
accounts
(37,500
)
-
Forgiveness of unsecured promissory
note
(10,000
)
-
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(1,251,873
)
230,285
(Increase) in inventory
(374,898
)
-
(Increase) in other current assets
(491,501
)
(159,797
)
(Increase) decrease in other assets
(4,250
)
7,778
Increase in accounts payable and accrued
expenses
1,042,150
170,524
Increase (decrease) in deferred
revenue
134,482
(47,940
)
Net cash used in operating activities
(1,075,636
)
(262,313
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of software license
-
(100,000
)
Capital expenditures
(182,078
)
(32,114
)
Collection of note receivable
-
21,699
Net cash used in investing activities
(182,078
)
(110,415
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Return of repayment on unsecured
promissory note
10,000
-
Net proceeds from issuance of common
stock
-
10,569,467
Loan proceeds on unsecured promissory
note
-
806,100
Net proceeds from issuance of common stock
from exercise
of stock options
46,470
139,258
Proceeds from issuance of common stock
from exercise
of warrants
19,800
110,000
Withholding taxes paid on vesting of
restricted stock units
-
(13,335
)
Net cash provided by financing
activities
76,270
11,611,490
Net (decrease) increase in cash
(1,181,444
)
11,238,762
CASH, beginning of period
13,121,392
3,350,853
CASH, end of period
$
11,939,948
$
14,589,615
Supplemental disclosure of noncash
investing and financing activities:
Note payable for software license
$
-
$
300,000
Settlement of executive bonuses with
restricted stock units
$
-
$
53,460
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by adjusting net loss
for certain reductions such gains on debt forgiveness and interest
and other income and certain addbacks such as income taxes,
impairments of long-lived assets and goodwill, depreciation,
amortization and stock-based compensation expense. Adjusted EBITDA
is provided to investors to supplement the results of operations
reported in accordance with GAAP. Management believes that Adjusted
EBITDA provides an additional tool for investors to use in
comparing our financial results with other companies that also use
Adjusted EBITDA in their communications to investors. By excluding
non-cash charges such as impairments of long-lived assets and
goodwill, amortization, depreciation and stock-based compensation,
as well as non-operating charges for interest and income taxes,
investors can evaluate our operations and can compare the results
on a more consistent basis to the results of other companies. In
addition, Adjusted EBITDA is one of the primary measures management
uses to monitor and evaluate financial and operating results.
We consider Adjusted EBITDA to be an important indicator of our
operational strength and performance of our business and a useful
measure of our historical operating trends. However, there are
significant limitations to the use of Adjusted EBITDA since it
excludes gains on debt forgiveness, interest and other income,
impairments of long-lived assets and goodwill, stock-based
compensation expense, all of which impact our profitability, as
well as depreciation and amortization related to the use of
long-term assets which benefit multiple periods. We believe that
these limitations are compensated by providing Adjusted EBITDA only
with GAAP net loss and clearly identifying the difference between
the two measures. Consequently, Adjusted EBITDA should not be
considered in isolation or as a substitute for net loss presented
in accordance with GAAP. Adjusted EBITDA as defined by us may not
be comparable with similarly named measures provided by other
entities.
A reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA
follows:
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net loss
$
(737,785
)
$
(760,273
)
$
(1,797,851
)
$
(733,671
)
Reconciling items:
Gain on forgiveness of unsecured
promissory note
-
-
(10,000
)
-
Interest and other income
(610
)
(9,125
)
(5,752
)
(11,193
)
Depreciation and amortization
41,191
46,961
83,989
80,756
Stock-based compensation expense
650,983
103,710
1,631,616
189,752
Adjusted EBITDA
$
(46,221
)
$
(618,727
)
$
(97,998
)
$
(474,356
)
About Intellicheck Nasdaq: IDN
Intellicheck (Nasdaq: IDN) is a trusted industry leader in
technology solutions that stop identity theft and fraud with
real-time identity verification. We make it possible for our
clients to increase revenues, improve customer service, and
increase operational efficiencies. The company is focused on
partnering with banks, credit card issuers and retailers as well as
law enforcement agencies, national defense clients and diverse
state and federal government agencies. For more information on
Intellicheck, visit us on the web and follow us on
LinkedIn, Twitter, Facebook and
YouTube.
Safe Harbor Statement
Statements in this news release about Intellicheck’s future
expectations, including: the advantages of our products, future
demand for Intellicheck’s existing and future products, whether
revenue and other financial metrics will improve in future periods,
whether Intellicheck will be able to execute its turn-around plan
or whether successful execution of the plan will result in
increased revenues, whether sales of our products will continue at
historic levels or increase, whether brand value and market
awareness will grow, whether the Company can leverage existing
partnerships or enter into new ones, whether there will be any
impact on sales and revenues due to an epidemic, pandemic or other
public health issue and all other statements in this release, other
than historical facts, are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
(PSLRA). These statements, which express management’s current views
concerning future events, trends, contingencies or results, appear
at various places in this release and use words like “anticipate,”
“assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,”
“future,” “intend,” “plan,” “potential,” “predict,” “project,”
“sense”, “strategy,” “target” and similar terms, and future or
conditional tense verbs like “could,” “may,” “might,” “should,”
“will” and “would” are forward-looking statements within the
meaning of the PSLRA. This statement is included for the express
purpose of availing Intellicheck, Inc. of the protections of the
safe harbor provisions of the PSLRA. It is important to note that
actual results and ultimate corporate actions could differ
materially from those in such forward-looking statements based on
such factors as: market acceptance of our products and the
presently anticipated growth in the commercial adoption of our
products and services; our ability to successfully transition pilot
programs into formal commercial scale programs; continued adoption
of our SaaS product offerings; changing levels of demand for our
current and future products; our ability to reduce or maintain
expenses while increasing sales; our ability to successfully expand
the sales of our products and services into new areas including
health care and auto dealerships; customer results achieved using
our products in both the short and long term; success of future
research and development activities; uncertainties around the
duration and severity of the COVID-19 outbreak and its ultimate
impact on our business and results of operations; our ability to
successfully market and sell our products, any delays or
difficulties in our supply chain coupled with the typically long
sales and implementation cycle for our products; our ability to
enforce our intellectual property rights; changes in laws and
regulations applicable to the our products; our continued ability
to access government-provided data; the risks inherent in doing
business with the government including audits and contract
cancellations; liability resulting from any security breaches or
product failure, together with other risks detailed from time to
time in our reports filed with the SEC. We do not assume any
obligation to update the forward-looking information.
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version on businesswire.com: https://www.businesswire.com/news/home/20210803005301/en/
Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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